I.

Brief intro about the country

India is a country in South Asia that is formally known as the Republic of India. It is the world's
seventh-largest land area, the second-most populated country, and the world's most populous
democracy. Fifty-five thousand years ago, modern people arrived on the Indian subcontinent from
Africa. Their extended occupancy as hunter-gatherers, which began in various degrees of isolation, has
resulted in a very diverse region, second only to Africa in terms of human genetic variation. Settled life
first appeared on the subcontinent 9,000 years ago, on the western outskirts of the Indus river basin,
and gradually evolved into the Indus Valley Civilisation of the third millennium BCE. India continues to
be one of the world's most ethnically diverse countries. Aside from its numerous religions and sects,
India is home to numerous castes and tribes and more than a dozen primary and hundreds of minor
linguistic groups from disparate language families. Religious minorities, such as Muslims, Christians,
Sikhs, Buddhists, and Jains, continue to make up a sizable fraction of the population, outnumbering the
populations of all countries except China. Although sincere efforts have been made to inculcate a
sense of nationhood in such a diverse community, tensions between neighboring communities have
persisted, sometimes resulting in violent outbursts. As one of the world's largest countries in terms of
land area, there is no doubt that India's most important sector in its economy is Agriculture. Its share of
the country's GDP has decreased, and it now stands at 14%. However, agriculture continues to be the
primary source of income for more than half of the country's people. With this in mind, the Union
Budget 2017-18 gives the agricultural sector a top priority, aiming to double farmers' incomes by 2022.
India's economy is full of ups and downs, and now this will be the topic of this research done by our
group.

II.

AUTHORS TITLE OF RESEARCH SOURCE/JOURNAL ABSTRACT/DESCRIPTION

Vijay Joshi Macro-Economic Economic and The macro-economic crisis in India erupted in
Stabilisation in India, Political Weekly early 1991 and happened to have a domino
and
1991-1993 and Beyond effect where it traces back to 1979-81 when
Vol. 28, No. 49 (Dec.
I. M. D. Little world oil prices doubled and grew a 2 percent
4, 1993), pp. 2659-
GDP deficit. Despite favorable developments,
2665 (7 pages)
India experienced hardly any adjustment after
1982, and the deficit was covered by a large
loan from the International Monetary Fund
(IMF) and heavy borrowing from commercial
resources. The current account deficits from
1982 to 84 result in an inappropriate exchange
rate policy; the 15 percent real exchange rate
remained for the next four years, and it
depreciated substantially. The export revived
strongly, but it was insufficient to outweigh
rising interest payment on external debt and
rapid growth of imports. The problem lay
reversal of India's erstwhile fiscal prudence,
the 4.5 percent of GDP for fiscal deficit up to
8.5 from 1970 to 1985-86. The increasing
shortage in the public sector resulted in
deterioration in the public finances persistence
to the current account of deficiency and
upsurge of inflation. Back in 1980, the
economy grew from a long-standing rate of 3.6
percent to 5.5 percent; however, some growth
is unsustainable, causing policy changes on
industry and investment. The crisis that
happened back then roots the crisis in early
1991, taking effect of underlying in high
inflation, the heavy burden of domestic and
minor external shocks. The fall in foreign
exchange leads to a shape downgrade to
India's credit rating and cutoff foreign private
lending. The external shocks in oil prices
weathered to have undue difficulty delivering in
the impinged on an economy. The effect was
believed to have a state due of unsustainable
macro-economic policies over a prolonged
period and unsound macro-economic position.
III. Recent development

 The economic progress of India over the last four decades is in many ways impressive. The
long-term growth rate is now well over 4 per cent annually, compared to only 1 per cent in the
decade before independence. Since independence, India's real Gross National Product (at
factor cost and at 1970/71 prices) increased from Rs. 178,410 million in 1951/52 to Rs. 612,010
million in 1984/85, in a period covered by six Five-Year Plans and three annual plans. This was
also accompanied by many important structural changes in resource mobilization, and in the
patterns of value added and foreign trade.

 Furthermore, there was substantial growth in, and structural transformation of, India's foreign
trade sector over this period. The growth of manufactured exports contributed substantially to
the growth of the manufacturing sector and to the increasing "economic openness" of the
economy. Similarly, there was change in the import basket in favour of material and capital
inputs. Another development in imports has been the significantly reduced dependence on
strategic products such as food, fibres, fuel, fertilizers, steel, and, indeed, machinery.

https://archive.unu.edu/unupress/unupbooks/uu04te/uu04te04.htm

 During the past 40 years, the Indian economy has undergone remarkable structural change.
The share of agricultural value added in GDP has more than halved between 1965 and 2005,
from 45 per cent to 19 per cent.

https://www.un.org/esa/sustdev/publications/industrial_development/3_1.pdf

 Another important part of the Indian economy is the Industry sector. Changes such as the end
of the ‘Permit Raj’ and opening up of the economy were welcomed in the country with great
enthusiasm and optimism. As a result of these changes, the industrial potential of the economy
has increased since 1991. 

o Proliferation of industries, from traditional iron and steel to jute and automobiles.

o Autonomy in production, marketing and distribution.

o Reduced red - tapism.

o Encouragement to private investments, both domestic as well as FDI.

 o Transfer of technology and benefits of research and development to the advantage of
the economy.

o Arrival of investment models such as joint ventures, public-private partnerships, MNCs.

o Private players got an opportunity to enter new sectors, which were earlier under
government monopoly.

 Food processing has emerged as a high - growth, high - profit sector and is one of the focus
sectors of the ‘Make in India’ initiative. The vast availability of raw materials, resources,
favourable policy measures and numerous incentives have led India to be considered as a key
attractive market for the sector. India is the second largest producer of food grains in the world.
This sector has huge potential in India due to increasing urbanization, income levels and a high
preference for packaged and processed food. Visit the sectors category to read more about
the food processing industry.

 Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC), Startup India, Digital
India have helped the Indian economy jump 65 ranks (in the last four years) in the World Bank’s
Ease of Doing Business Report. These measures cemented India’s reputation as one of the few
bright spots in an otherwise grim global economy. India is among the fastest growing major
economies, underpinned by a stable macro - economy with declining inflation and improving
fiscal and external balances. 

https://www.investindia.gov.in/team-india-blogs/indian-economy-overview

 Stabilization is a necessary accompaniment of structural reform that is crisis-driven. In the

longer run, structural reform is as helpful as stabilization as stabilization is for structural reform.
They must therefore go band in hand.

https://www.jstor.org/stable/4400490